Wang Jianlin made billions speculating on Chinese real-estate; now that he's diversified into buying Hollywood movie studios and chains of movie theaters, the richest man in China is prepared to say what many have known: the Chinese property market is a huge, deadly bubble that's ripe to burst.
The issue is the huge buildout of commercial properties in secondary and tertiary cities -- developments for which there is no demand, created solely to absorb speculators' capital with the promise of quick flips to other, dumber speculators.
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.
"I don't see a good solution to this problem," he said. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
It's a serious worry in China, where the economy is slowing at the same time as high debt levels continue to increase rapidly. There are massive sums at stake in the real estate market: direct loans to the sector stood at roughly 24 trillion yuan ($3.6 trillion) at the end of June, according to Capital Economics.
Billionaire: Chinese real estate is 'biggest bubble in history'
[Jethro Mullen and Andrew Stevens/CNN Money]
(via Naked Capitalism)
The increasingly popular social media application TikTok has a concerning relationship with the Chinese state. That link became ever the more concerning today, when reports began circulating of a brand new partnership between the company that owns TikTok, ByteDance, and the government of China.
Just in time for the holidays, the China Law Blog (previously) rounds up the three most common scams in China that target foreign firms: "Come to China and celebrate our deal" (foreign business person concludes a deal, goes to China, and is roped into paying for a banquet, gifts for the Chinese company boss, and […]
I have but one question. Are they hiring? Sounds like a great place to work.
People who ask themselves why they need a dashcam usually have one thing in common: They’ve never been a serious collision. Even in fender benders, these gadgets can save you an immense amount of time and hassle, stopping headaches before they even start. If you’re looking for a reliable starter cam, the myGEKOgear Orbit 110 […]
There’s no shortage of wireless chargers out there. So when one scores a Best of Innovation Award at the Consumer Electronics Show, we take notice. And, those industry nods mean good news for just about anybody with a smartphone, because the HyperCharger X Wireless Charger means there’s no excuse for losing power when you’re out […]
Once you’ve cut steak or poultry with some actual quality knives, it’s really tough to go back to those budget blades you bought at the department store a couple of decades ago. Consider that a fair warning about this 5-Piece Professional Damascus Chef’s Kitchen Set. The holiday discount makes it easy to buy for a […]